In early 2025, Target Corporation made headlines by scaling back its Diversity, Equity, and Inclusion (DEI) efforts.

These decisions, driven by political pressure and internal recalibration, triggered a national boycott, shareholder lawsuits, and waves of public backlash.

As employers across industries watch closely, Target’s story offers key lessons about the risks of retreating from DEI in a climate of scrutiny—and how those choices ripple into talent, brand, and long-term hiring strategy.

Target’s DEI Rollback: An Overview

In January 2025, Target ended several of its most visible DEI initiatives, including its REACH (Racial Equity Action and Change) strategy and participation in the Human Rights Campaign’s Corporate Equality Index (Stern, 2025).

The company also rebranded its Supplier Diversity program to “Supplier Engagement” and removed many DEI-focused goals from its website (Davis, 2025).

Target stated that the move was a response to “an evolving external landscape”—a phrase interpreted by many as pressure from political actors and conservative shareholder groups (Hernandez, 2025).

Backlash, Boycotts, and Legal Fallout

Consumer Boycotts

The public reaction was swift. Protesters gathered outside Target’s Minneapolis headquarters, and a 40-day consumer boycott was organized by civil rights groups (Newsweek, 2025).

The Twin Cities Pride Festival cut ties with Target, canceling a major partnership and $50,000 in corporate funding (Fink, 2025).

Shareholder Lawsuit

In February, Target was hit with a class action lawsuit by the City of Riviera Beach Police Pension Fund, which alleged that Target misled investors by failing to disclose the potential risks of scaling back its DEI programs (Reuters, 2025).

Financial Decline

Target’s stock dropped by 12% in the wake of the announcement (MarketWatch, 2025).

Store traffic fell 7.9% year over year in Q1 2025 (Bay State Banner, 2025), and internal sources reported increased turnover among employee resource group leaders and DEI staff (Diversity.com, 2025).

What This Means for DEI Hiring

Target’s experience reflects a growing reality: DEI isn’t just a statement—it’s a hiring strategy.

When a company dismantles inclusive initiatives, the impact extends beyond branding. It directly affects:

• Talent Attraction: Gen Z and Millennial job seekers consistently rank DEI as a top factor in job decisions.

• Retention: Employees from underrepresented backgrounds are more likely to leave organizations that scale back inclusion efforts.

• Credibility in Recruitment: Candidates today research employer values. Quiet rollbacks—or performative DEI—lead to mistrust and disengagement.

As other corporations contemplate following suit, the Target case shows that backing away from DEI sends a message to current and future talent—one that may cost more than it saves.

How Diversity.com Helps Employers Lead with Purpose

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• Five Years After George Floyd: Pew Survey Reveals Doubts About DEI Progress

• The Rise of DEI Fatigue: Navigating the Challenges and Reaffirming Commitments

• Stockholm Said No: What a Swedish Rejection of U.S. Pressure Says About Global DEI Values

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• Why Companies Are Reframing DEI Language in 2025

Sources & References

• Bay State Banner. (2025, May 1). Is the Target boycott working? https://baystatebanner.com/2025/05/01/is-the-target-boycott-working/

• Davis, A. (2025, January 24). Target ends DEI goals amid ‘evolving external landscape,’ company officials say. Houston Chronicle. https://www.houstonchronicle.com/news/houston-texas/trending/article/target-dei-20054488.php

• Diversity.com. (2025, February). Target's DEI Rollback Update. https://diversity.com/post/target-dei-rollback-2025-impact-update

• Diversity.com. (2025, March). Target's DEI Fallout: How Much Did the Boycott Really Cost? https://diversity.com/post/target-dei-boycott-financial-impact

• Fink, B. (2025, January 28). Target facing backlash from LGBTQ+ groups after scaling down DEI practices. New York Post. https://nypost.com/2025/01/28/business/target-facing-blowback-from-minneapolis-lgbt-pride-groups-after-axing-dei/

• Hernandez, C. (2025, April 21). Target deals with backlash after rolling back DEI programs. ABC Columbia. https://www.abccolumbia.com/2025/04/21/target-deals-with-backlash-after-rolling-back-dei-programs/

• MarketWatch. (2025, January 24). Target joins Walmart in pulling back on DEI. https://www.marketwatch.com/story/target-joins-walmart-in-pulling-back-on-dei

• Newsweek. (2025, March 5). Target 40-Day Boycott Over DEI Stance Begins. https://www.newsweek.com/target-40-day-boycott-over-dei-stance-begins-2040382

• Reuters. (2025, February 3). Target sued for defrauding shareholders over DEI rollback risks. https://www.reuters.com/business/retail-consumer/target-is-sued-defrauding-shareholders-about-dei-2025-02-03

• Stern, L. (2025, January 24). Target ends DEI initiatives, reiterates commitment to inclusion. ESG Dive. https://www.esgdive.com/news/target-ends-dei-initiatives-belonging-inclusion/738863/